What is defined as a "funds transfer"?

A "funds transfer" is specifically described as a transaction for making a payment to the beneficiary. In the context of financial regulations, this term encompasses any movement of funds from one party to another, where the intent is to settle a monetary obligation. Funds transfers typically involve various mechanisms, including wire transfers, electronic transfers, or even checks, with the primary focus on the effective payment to the intended recipient.

The other options, while related to financial activities, do not accurately define a "funds transfer." A loan between financial institutions is a form of credit extended but does not inherently qualify as a transfer of funds aimed specifically at settling a payment. A deposit made to an account represents a deposit transaction rather than a transfer to another party. Similarly, a credit card transaction involves a purchase and subsequent payment process but does not align with the definition focused on the direct transfer of funds to a beneficiary. Thus, the correct understanding revolves around the transaction designed specifically to make a payment to a beneficiary.